An experimental analysis of Mediterranean supply chains through the use of cost KPIs

Abstract

Over the last twenty years, the intensification of trade flows and the rapid growth of demand for goods and services from new emerging countries have led to a deep change in global transport and a dramatic increase in the level of competitiveness among transportation and logistics service providers. To remain competitive, transport and logistics operators are required to carry out operations with maximum efficiency to meet the requirements of a continually growing and diversified demand. Supply Chain Management is one of the areas that have recently attracted much attention in logistics. The proposed study aims to provide simple quantitative tools based on Key Performance Indicators (KPIs) to support the evaluation process of intermodal supply chains. A sample of 44 real-world Mediterranean supply chains has been collected and analyzed. Four quantitative KPIs describing the relationship time-cost and the ratio cost/kilometer have been derived from empirical cost functions and used to characterize the various elements of the analyzed transport chains, and of the chains as a whole, from a cost perspective.